As the global landscape of finance evolves, Indonesia’s financial authorities are poised to implement significant changes to their tax framework regarding cryptocurrency. This shift is set to take effect shortly, with particular attention being paid to transactions conducted on international platforms.
New Tax Regulations on Cryptocurrency
Recently, Indonesia’s Finance Ministry disclosed impending changes in tax legislation aimed at cryptocurrency transactions, effective August 1, 2025. Finance Minister Sri Mulyani Indrawati remarked that these measures, encapsulated in Minister of Finance Regulation (PMK) 50/2025 and 53/3035, aim to enhance “legal certainty” and bring tax structure in line with the burgeoning digital asset market.
As detailed in a report by Reuters, sellers transacting on domestic exchanges will observe a tax rise from 0.1% to 0.21% on transaction values. In contrast, those engaging in sales on foreign platforms will see a more pronounced increase, with tax rates escalating from 0.2% to 1% starting Friday.
Notably, the updated legislation removes the value-added tax (VAT) applicable to cryptocurrency transactions. Previously, this VAT ranged between 0.11% and 0.22%. PMK 53/2025 has been pivotal in nullifying certain earlier articles, thereby clarifying tax implications for both traders and miners.
The latest PMK 50/2025 stipulates that while digital assets aligned with securities are exempt from VAT, essential services—like those provided by Electronic Trading System Operators (PMSE) or transaction verification by miners—remain taxable.
For miners specifically, there is a rise in VAT from 1.1% to 2.2%, while a previous special income tax rate of 0.1% has been abolished. Moving forward, miners’ income will be subjected to personal or corporate tax rates, starting in 2026.
Non-compliance with the stipulations laid out will incur penalties in accordance with the General Provisions and Tax Procedures Law.
The Evolution of Regulatory Frameworks
In response to the evolving landscape, Tokocrypto, a prominent exchange, advocates for fiscal strategies that would invigorate innovation within the sector, highlighting that the new tax rates surpass those applied to capital gains in traditional investments. As reported, they stressed the necessity for enhanced oversight on transactions executed via foreign platforms.
Current statistics reveal that Indonesia boasts over 20 million cryptocurrency users as of 2024, which notably exceeds the number of stock market investors. The total transaction value in the digital assets realm has surged to approximately $39.67 billion, positioning Indonesia as a leader in cryptocurrency adoption, outpacing countries like the US and Russia.
Past measures by Indonesian financial authority faced scrutiny, particularly the restriction on using digital currencies for direct purchases and the dual tax framework interpreted as growth-limiting by industry stakeholders.
Last year marked a crucial transition from a cautious regulatory environment to a more progressive stance aimed at establishing a transparent and robust regulatory framework that aligns with international best practices.
Commencing in January, the industry oversight transitioned from the Commodity Futures Trading Agency (Bappebti) to the Financial Services Authority (OJK), showcasing the government’s commitment to adjusting its approach to cryptocurrency governance.
